General Motors Damage-Control Efforts: Free Loaner Cars For Owners of Recalled Vehicles

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Last month, the recall of 1.6 million older small cars worldwide has been unveiled by General Motors Company (NYSE:GM) as defective ignitions can shut off engines suddenly. Drivers lost control of steering wheel and power brakes and in case of accident, the air bags do not blow up and about 12 people have been died due to this problem. In this scenario, along with $500 toward a new GM car, more than a million holders of compact cars are offered free loaner cars by General Motors.

This proffer is revealed on Wednesday on the website of National Highway Traffic Safety Administration and it is in action now. Until the defective switches are substituted by parts that will arrive at dealerships on around April 7, the loaner cars will be used by the owners, according to GM. The suggested $500 cash-allowance is valid until April 30, 2014 and the owners can enjoy this advantage on applying for this offer.

The recall of more than 780,000 Cobalts and Pontiac G5s (model years 2005-2007) had been unveiled by GM on Feb. 13. The company further added Chevrolet HHR SUVs, and Pontiac Solstice and Saturn Sky sports cars (2006-2007) and 842,000 Saturn Ion compacts (2003-2007) two weeks later.

The recall process is supervised and investigated by two congressional committees, a Department of Justice and federal safety watchdogs. From last ten years, the company is well aware of this problem.
The National Highway Traffic Safety Administration also come in trouble as question is raised by Committees in the House and Senate that why the government’s road safety regulators did not take action on time.

In GM’s damage-control efforts, this loaner/rebate program is initiated. To avoid related problems in the future, an internal re-evaluation would be done that will create would bring upgrading in car systems, according to CEO Mary Barra.

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